Last Updated on September 30, 2024 by Owen McGab Enaohwo
Any business desires to run as efficiently as possible. Streamlined business operations offer cost savings, better quality control, improved productivity, and (most importantly) improved customer service.
Properly documenting procedures is one of several contributing factors to streamlined ops.
In this blog, we will examine everything you need to know about the best practices for documenting business processes. Specifically, we will cover the following:
- Examples of business procedures.
- The influence of varying state legislation.
- Six best practices when documenting procedures.
What Is a Business Procedure?
A business procedure is a set of documented steps designed to accomplish a specific task or process consistently and efficiently within an organization.
These documents guide employees in performing tasks in compliance with company policies and procedures and regulatory requirements. They are tailored to meet specific needs, including varying state legislations.
Examples of business procedures are too numerous to mention. Here are some of the most common to aid understanding:
- Processes relating to hiring, training, and onboarding new employees and offboarding ex-employees.
- The steps to take when handling customer complaints.
- Invoicing and billing procedures.
- Workplace safety protocols.
- User access control and management.
- Product inspection and raw materials testing procedure.
- Compliance and regulatory adherence.
- Ad-hoc work instructions and SOPs.
- Internal documents like business plans.
How Different State Legislations Influence Documenting Procedures
State legislation influences how businesses document procedures because each state may have different laws and regulations that businesses must follow. This means businesses operating in multiple states need to document their procedures to ensure compliance with each state’s unique requirements.
Here are two examples to illustrate how laws in America are different state-by-state:
Employment Laws
Federal law requires any employee who works over 40 hours per week to be paid overtime for each hour above 40. The minimum wage is set at $7.25 per hour, as mandated by the Fair Labor Standards Act (FLSA).
As a result, every company in every state in America has to follow this rule.
However, California’s local state law has stricter rules on minimum wage and overtime payments. Their minimum wage is over double, sitting at $16 per hour, while overtime payments become mandatory for anyone who works over eight hours per day.
So, if someone works 20 hours per week, state law says no overtime is applicable, yet California says it is if one of the days exceeds eight hours.
As a result, businesses in California need a system in place to ensure all employees who work over eight hours a day are compensated, requiring slightly different record-keeping from a business outside California.
Emission Standards
In the manufacturing industry, federal emissions standards set by the U.S. Environmental Protection Agency (EPA) apply nationwide and require manufacturers to document vehicle emissions testing and certification during the production process to meet Tier 3 standards and greenhouse gas (GHG) emissions reductions starting from 2017 and becoming more stringent by 2027.
In contrast, California’s emissions standards, regulated by the California Air Resources Board (CARB), are more stringent and include additional programs like the Zero-Emission Vehicle (ZEV) mandate. This means that a car manufacturer must document more advanced emissions control technologies and keep detailed records to comply with both federal standards and California’s specific regulations.
6 Best Practices When Documenting Procedures
Good habits when documenting procedures will make any business immune to legal penalties or operational inefficiencies–regardless of how many states it operates in.
Choose Your Location Wisely
Have you yet to set up your business? You’re in a good position because you can choose a state that is most friendly to your business.
For example, forming an LLC in Florida can serve as a solid foundation for creating standardized procedures that work across multiple states. This approach can save you time and headaches as you expand your operations.
Understand How The Laws Affect You
The natural first step is having a clear idea of the laws that require your attention and how those laws affect you.
The best way to get to grips with relevant laws is to have an in-house legal team or contract the responsibility to external law firms. They can:
- Advise on the regular and one-off actions you need to take.
- Assist in implementing a document management system.
- Developing business process and procedure handbooks.
- Providing quality control measures.
- Interpret the law for your context.
Meticulously Proofread Documents
Documenting procedures that comply with varying state legislation can be challenging, but leveraging modern tools can streamline this process.
Utilizing an online proofreader tool can significantly enhance the quality of your documents by catching errors and ensuring consistency in language and terminology. This is particularly important when dealing with the nuanced differences in state laws, where a minor mistake can lead to significant compliance issues.
Scheduled Reviews
The only way your business can keep up with changing federal and state laws is by scheduling reviews in the diary on a regular basis. Don’t keep reviews ad hoc or wait for “spare time.” Business as usual and other daily activities take over, and document reviews and updates fall lower down the list of priorities.
Set specific bi-yearly intervals to review documentation and compliance, ensuring any compliance gaps are addressed before they become a legal issue.
Make The Documents Interactive
Don’t outline policies and procedures in endless blocks of text. Employees will either not read or retain the information. Where possible, incorporate diagrams, images, and flow charts to communicate key bits of information. People are more likely to remember what they visualize than what they read.
Make Documents Accessible
You can’t update documents to reflect new federal and local laws if they’re inaccessible. Accessibility works in two ways.
Physical accessibility refers to the ease with which documents can be located. To improve physical accessibility, it’s a good idea to digitize all documents and store them in a central place. If that sounds appealing, you can learn more about how it works on Sweet Process.
Accessibility also means making the document friendly for people with sight difficulties. Incorporating screen readers and different color contrast options makes the documents inclusive for all.
Wrapping Up
Properly documenting procedures saves business owners much hassle, time, and money in the long run. It also ensures that the business is run correctly without inadvertently breaking the law.
Ultimately, good document management practices help businesses maximize operational efficiency, achieve business goals, and provide the platform to meet and exceed customer expectations.
About The Author
Divashree builds high-authority backlinks for SaaS brands. She is the founder of SAASY LINKS, a white-hat link-building agency catering to SaaS brands.